Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

28. Deferment of levy till Time of Supply

Section 12(1) &  Section 13(1) of CGST Act provide that liability to pay CGST/ SGST shall arise
at the time of supply…….

Issue
The language employed appears to indicate that the levy is deferred till the time of supply.
Tax levied under section 9 appears to be suspended until time of supply determined as per
provisions of sections 12 & 13.

Suggestion
• It is suggested to clarify that the levy under section 9 would be final but the payment of
the levy would be deferred under time of supply under section 12. Alternatively, it may
be clarified that the levy under section 9 is complete only at the time of supply under
sections 12 & Section 13.
• Thus, section 12(1) & Section 13(1) may be reworded as “Tax levied under section 9 is payable
at the time of supply as determined in terms of the provisions of this section.”

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

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